Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Well, let's take a look at some stocks on the
Speaker 1: move today in Aita. I'm Stephen Carroll and I'm joined
Speaker 1: by Bloomberg's market supporter Anthony Stevens for more. And so
Speaker 1: let's start with a report that Nvidia is investing in
Speaker 1: a data center power producer, posting a range of names
Speaker 1: in Taiwan this morning.
Speaker 3: Yeah, and that's kind of solidified sentiment around the data
Speaker 3: center build out in Taiwan. There was some doubt about
Speaker 3: the pace of USAI investments in the data center space.
Speaker 3: We've seen some weakness in the neoclouds for example, but
Speaker 3: the fact that Nvidia is putting them massive balance sheet
Speaker 3: behind this team has really helped things. So you see
Speaker 3: names like ASE or Delta Electronics, which is actually coincidentally
Speaker 3: one of the biggest stocks in Thailand, which its subsidiary there.
Speaker 3: One of the largest Delta is uplimit up. You have
Speaker 3: light On pretty close to limit up, and a whole
Speaker 3: range of these kind of AI infrastructure names hovering around
Speaker 3: limit up, so Tatawan Limit up is up ten percent
Speaker 3: and that market is on fire on this theme.
Speaker 1: We're also seeing some big earnings related moves in the
Speaker 1: Japanese market today.
Speaker 3: Yeah, Japan's been standing out in terms of the volidity
Speaker 3: around earnings, and today most of those earnings seem to
Speaker 3: be resolved on the upside across a range of sectors.
Speaker 3: So we have Recruit, which was up around twenty percent
Speaker 3: now it's on special quotation de beat on earnings. This
Speaker 3: is a software play that strikes at a wide swathe
Speaker 3: of kind of Japanese corporate software needs. They are twenty percent.
Speaker 3: This is part of the big squeeze in software that
Speaker 3: even the US has been seeing, and to a less
Speaker 3: extent in Europe as they kind of capitalize on cheaper AI.
Speaker 3: There's also twenty percent moves in cismes and a relatively
Speaker 3: household name, Seiko Watchers is up fifteen percent as well
Speaker 3: after raise guidance, So quite a decent way that the
Speaker 3: japan manufacturing universes up around fifteen two percent after earnings.
Speaker 1: Yeah, pretty major moves on the flip side, though, Chinese
Speaker 1: opticle names continue to be trailed by being excluded from
Speaker 1: the US market.
Speaker 3: Yeah, so this is one of those China Ai exports
Speaker 3: success stories, the optical transceivers that connect servers together, and
Speaker 3: they were exporting most of their manufacturing to the US.
Speaker 3: Now President Trump wants to kind of centralize that technology
Speaker 3: at home, and also there are some concerns that these
Speaker 3: technologies can transmit data back to China, which are obviously unsubstantiated.
Speaker 3: But the excluding of this sector from the US has
Speaker 3: caused a real big dent in positioning. This is one
Speaker 3: of the biggest constituents of the Chinese Index. It's around
Speaker 3: twenty percent of the Chinese Index, and Chinese domestic retail
Speaker 3: is very strongly position in this now as they have
Speaker 3: no idea what is going to happen on the regulatory
Speaker 3: side from the US, they're cutting first and asking questions later.
Speaker 3: So zongji Ino Light is down eight point three percent
Speaker 3: and eopto link is down seven and the Chinese Index
Speaker 3: as a whole is down two. Bear in mind zongji
Speaker 3: in a light listed in the in Hong Kong just
Speaker 3: a couple of days ago, and it was one of
Speaker 3: the largest IPOs in around seven years.
Speaker 1: Yeah, certainly really interesting sexual to be keeping an eye
Speaker 1: on as well. Thinking a bit more broadly about the
Speaker 1: market santry too. We've been having this discussion about the yen,
Speaker 1: and it's slowly retracing some of those gains after the intervention.
Speaker 1: Weaker again, four tenths of one percent today, one fifty
Speaker 1: eight against the dollar. I mean, how likely does further
Speaker 1: intervention look when we're looking at the weakness returning to
Speaker 1: the Japanese currency.
Speaker 3: This speaks to some kind of vagueness around the goals
Speaker 3: of the intervention in the first place, right, like in
Speaker 3: the sense that Japan does not want a materially stronger yen.
Speaker 3: From the looks of it, it's a limited intervention. It
Speaker 3: just wants to prevent one way speculation in the en,
Speaker 3: and to that extent it has kind of succeeded in
Speaker 3: the sense that the speculators have halved their CFTC kind
Speaker 3: of speculative shots. On the end, the en volatility is
Speaker 3: a lot higher than it used to be, and the
Speaker 3: en is hovering around the two other day moving average,
Speaker 3: So in that sense, you know, it's no longer so
Speaker 3: easy to bet on the direction of the end. In
Speaker 3: the other sense of the word, though, intervention cannot be
Speaker 3: successful unless the BOJ follows through and in that vein
Speaker 3: the fact that one BOJ member is on the tapes
Speaker 3: talking about a faster pace of hikes than the market anticipates,
Speaker 3: that is interesting. That is the kind of messaging the
Speaker 3: market will need for the end to strengthen kind of appreciably.
Speaker 3: But until we see action from the BOJ, until we
Speaker 3: see Tokyo inflation, for example, pick up markedly, the kind
Speaker 3: of conviction around yen strength is going to be limited
Speaker 3: and people are going to continue to pick a fight
Speaker 3: with it. Now we have US inflation and the US
Speaker 3: Treasury auctions in the middle end of that week, and
Speaker 3: to be fair, it probably is more important to the
Speaker 3: dollar end what the dollar leg of the creators.
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